Colorado Becomes First State in US to Regulate AI for Bias

Under the new law, developers, deployers, and businesses using AI systems at “high-risk” for bias discrimination in critical areas like housing will be required to account for risks and be transparent about how the technology is being used.

1 minute read

May 28, 2024, 7:00 AM PDT

By Mary Hammon @marykhammon


Close-up of apartment rental listing on iPad or tablet device.

terovesalainen / Adobe Stock

Lawmakers in Colorado have passed the nation’s first bill aimed at protecting people against AI algorithmic discrimination in critical areas like housing, employment, and healthcare, according to a People of Color in Tech article by Samara Linton. This comes just weeks after the U.S. Department of Housing and Urban Development issued a warning that AI-powered software used to select tenants for rental housing and target housing advertisements can introduce bias and potential discrimination into the process. 

Under SB205, developers, deployers, and businesses using “high-risk artificial intelligence systems — defined as those that “can potentially lead to differential treatment based on protected classifications such as age, disability, race, religion, or sex” — will be required to notify the Colorado attorney general of discriminatory risks and outcomes, have risk management strategies in place, and be transparent with the public about AI’s purpose and the types of decisions it’s being used for.

Linton reports that the legislation faced pushback from the tech industry, which argues a state-by-state approach to AI regulation could stifle innovation  — the same argument that led Connecticut Governor  Ned Lamont to veto a similar bill earlier this month. “Other states are closely watching the outcome of Colorado’s legislative efforts. More than 40 states, including California, are considering some 400 AI-related bills, many of which address discrimination issues,” Linton writes.

Wednesday, May 22, 2024 in People of Color in Tech

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

5 hours ago - Zachary Whalen

Overlapping highways

The state-sanctioned urbicide of Austin

People don’t kill cities. Freeways do.

September 8, 2026 - Benjamin Schneider

The Hoover Dam blocking the Colorado River. The river's water level is noticeably low. The cliffs surrounding the blue water are brown and jagged.

US to reduce Colorado River water deliveries to Mexico

A new Colorado Treaty amendment reduces Mexico’s Colorado River water allocation by 250,000 acre feet.

September 11, 2026 - The Arizona Republic

A cluster of wind turbines beneath a stormy sky, above a forest where the leaves are beginning to change colors.

5 New England states march closer to 800 megawatt wind energy project

Securing federal approval for the project may be complicated under the Trump administration, which has historically been hostile towards domestic wind power.

1 hour ago - Inside Climate News

People boarding a bus on Maryland's Orange Route.

Baltimore to break ground on $50 million Transit Priority Project

The project will bring faster bus trips, safer streets and better bike connections to Baltimore.

2 hours ago - Mass Transit

A brick building with a circular sign with the Airbnb logo hanging off of it.

Airbnb launches $250 million 'last-dollar financing' housing accelerator, makes first investment in Austin

The company will put $6.4 million towards affordable housing development in Texas’ capital.

3 hours ago - Smart Cities Dive

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.